Ch 10 Test

1. A sample of 64 observations is selected from a normal

population. The sample mean is 215, and the population standard
deviation is 15. Conduct the following test of hypothesis using the
0.025 significance level.

H0: μ ≥ 220
H1: μ < 220

a. Is this a one- or two-tailed test?

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
One-tailed test

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

o.
Two-tailed test
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b. What is the decision rule? (Negative amount should be
indicated by a minus sign. Round your answer to 2
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decimal places.)
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c. What is the value of the test statistic? (Negative amount

should be indicated by a minus sign. Round your answer
to 3 decimal places.)
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d. What is your decision regarding H0?

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
Reject
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
Do not reject
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e. What is the p-value? (Round your answer to 4 decimal

places.)

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 Explanation
a.
This test is one-tailed, because the alternate hypothesis indicates a greater than
direction.

b.
Since this is a one-tailed test and the alternate hypothesis indicates a greater than
direction, the significance level 0.025 is placed in the left or lower tail. That means
0.4750 is the area between 0 and the critical value. Locate the closest value to 0.4750
in the body of the standard normal table. Then read the critical value from the row and
column corresponding to 0.4750. It is 1.96. Recall the alternate is "less than". The
decision rule is: Reject H0 when z > −1.96.

c.
The test statistic is −2.667, found by z=215−220(15/64√)z=215-220(15/64) .

d.

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Because −2.667 < −1.96, reject H0 and conclude that the population mean is less than

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220 at the 0.025.

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e.
The area under the standard normal curve between 2.667 and 0 is 0.4962. So the p-

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value = 0.0038, found by (0.5000 − 0.4962). There is less than 0.5% chance of
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collecting a sample with this z value if H0 is true.
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2. The management of White Industries is considering a new
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method of assembling its golf cart. The present method requires a

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mean time of 42.3 minutes to assemble a cart. The mean assembly

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time for a random sample of 24 carts, using the new method, was
40.6 minutes, and the standard deviation of the sample was 2.7
minutes. Using the 0.10 level of significance, can we conclude that
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the assembly time using the new method is faster?

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a. What is the decision rule? (Negative amount should be

indicated by a minus sign. Round your answer to 3
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decimal places.)
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b. Compute the value of the test statistic. (Negative amount

should be indicated by a minus sign. Round your answer
to 3 decimal places.)
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c. What is your decision regarding H0?

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 Reject


Fail to reject
Explanation
a.
You wish to test whether the mean is faster (less) than 42.3 minutes and that does not
include the equality. Make it the alternate hypothesis. The null hypothesis is the
opposite of the alternate. So they are H0: μ ≥ 42.3 and H1: μ < 42.3. There are 23
degrees of freedom, found by n − 1 = 24 − 1. Refer to the t table for a one-tailed test
and the 0.10 significance level. The t value is 1.319 and the alternate states a “less
than” direction. The decision rule Reject H0.

b.
Reject H0 if t < −1.319. The test statistic is t=40.6  −  42.3(2.7/24√)=−3.085.t=40.6  −  

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42.3(2.7/24)=−3.085.

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c.

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Since the test statistic −3.085 is less than the critical value −1.319, reject H0. The mean
assembly time is less than 42.3 minutes.

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3. Hugger Polls contends that an agent conducts a mean of 53 in-
depth home surveys every week. A streamlined survey form has
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been introduced, and Hugger wants to evaluate its effectiveness.

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The number of in-depth surveys conducted during a week by a

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random sample of 15 agents are:

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53 57 50 55 58 54 60 52 59 62 60 60 51 59 5
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Click here for the Excel Data File

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At the 0.05 level of significance, can we conclude that the mean

number of interviews conducted by the agents is more than 53 per
week? (Round your answer to 3 decimal places.)

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 Compute the value of the test statistic. (Round your answer to 3
decimal places.)

What is your decision regarding H0?


Reject


Do not reject

Estimate the p-value.

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Explanation

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You wish to test whether the mean is greater than 53 and that does not include the

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equality. Make it the alternate hypothesis. The null hypothesis is the opposite of the
alternate.

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So they are H0: μ ≤ 53 and H1: μ > 53. There are 14 degrees of freedom, found by n − 1
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= 15 − 1. Refer to the t table for a one-tailed test and the 0.05 significance level.
The t value is 1.761 and the alternate states a “greater than” direction. The decision
rule is:
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Reject H0 if t > 1.761. Assume the population is normally or approximately normally

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distributed. The sample mean is 56.4 and s = 3.7378. The test statistic is
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t=56.4−53.0(3.7378/15√) = 3.523.t=56.4−53.0(3.7378/15) = 3.523.

Since the test statistic 3.523 is greater than the critical value 1.761, reject H0 and
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conclude that the mean number of surveys conducted is greater than 53. Find the row
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with 14 degrees of freedom in the t table. The statistic 3.523 is between 2.977 and
4.140. The one-tailed significance level for 2.977 is 0.005 and for 4.140 it is
0.0005. Therefore, the p-value is between 0.0005 and 0.005. Using software we find the
actual p-value is about 0.002.
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4. A recent article in Vitality magazine reported that the mean

amount of leisure time per week for American men is 40.0 hours.
You believe this figure is too large and decide to conduct your own
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test. In a random sample of 60 men, you find that the mean is 37.8
hours of leisure per week and that the standard deviation of the
sample is 12.2 hours.

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 Can you conclude that the information in the article is untrue? Use
the 0.05 significance level.

a. What is the decision rule? (Negative amount should be

indicated by a minus sign. Round your answer to 3
decimal places.)

b. Compute the value of the test statistic. (Negative amount

should be indicated by a minus sign. Round your answer
to 2 decimal places.)

c. What is your decision regarding H0?

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

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Reject

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

o.
Fail to reject
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d. Determine the p-value.
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Explanation
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a.
We wish to test whether the mean is less than 40 hours and that does not include the
equality. Make it the alternate hypothesis.

The null hypothesis is the opposite of the alternate. So the hypotheses are H0: μ ≥ 40
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and H1: μ < 40. There are 59 degrees of freedom, found by n − 1 = 60 − 1. Refer to
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the t table for a one-tailed test and the 0.05 significance level. The t value is 1.671 and
the alternate states a “less than” direction. The decision rule is: Reject H0 if t < −1.671.

b.
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Assume the population is normally or approximately normally distributed. The sample

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mean is 372.8 and s = 12.2. The test statistic is

t=37.8−40(12.2/60√)=−1.40t=37.8−40(12.2/60)=−1.40
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c.
Since the test statistic (−1.40) is greater than the critical value (−1.671), H0 is not
rejected. Find the row with 59 degrees of freedom in the t table. The statistic 1.40 is
between 1.296 and 1.671.

d.
The one-tailed significance level for 1.296 is 0.10 and for 1.671 it is 0.05. Therefore,

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 the p-value is between 0.05 and 0.10. Using software we find the actual p-value is about
0.083. The p-value is the likelihood of drawing a random sample under the null
hypothesis with this test statistic or less. We cannot conclude the mean leisure time is
less than 40 hours per week.

5. Listed below is the annual rate of return (reported in percent) for

a sample of 12 taxable mutual funds.

4.63 4.15 4.76 4.70 4.65 4.52 4.70 5.06 4.42 4.51 4.24 4.52

Using the 0.05 significance level, is it reasonable to conclude that

the mean rate of return is more than 4.50%?

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a. What is the decision rule? (Round your answer to 3 decimal
places.)

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b. Compute the value of the test statistic. (Round your answer
to 3 decimal places.)
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c. What is your decision regarding H0?

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Explanation
a.
We wish to test whether the mean is more than 4.5 and that does not include the
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equality. Make it the alternate hypothesis. The null hypothesis is the opposite of the
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alternate. So the hypotheses are H0: μ ≤ 4.5% and H1: μ > 4.5%. There are 11 degrees
of freedom, found by n − 1 = 12 − 1. Refer to the t table for a one-tailed test and the
0.05 significance level. The t value is 1.796. The decision rule is: Reject H0 if t > 1.796.
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b.
Assume the population is normally or approximately normally distributed.
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X¯¯¯X¯ = 4.5717 and s = 0.2405.

The test statistic is t=4.5717−4.500.2405/12√=1.033.t=4.5717-4.500.2405/12=1.033.

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c.
Since the test statistic 1.033 is less than the critical value 1.796, do not reject H0. The
mean rate of return is not more than 4.5%.

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 m
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aC s
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